Concerns about Malaysia’s political instability continue to move up after news broke out in the press last weekend that Anwar Ibrahim (the de facto leader of Pakatan Rakyat) has been accused of sodomy (again). In addition, Mr. Anwar also received death threats over the weekend which resulted him to seek refuge in the Turkish Embassy. YouInvest team believes that political risk in the country has heightened sending negative sentiment sent to the stock market. In the near term, market sentiment will remain weak as news reports on political mud-slinging and power jostling between local politicians will keep stock market investors on the sideline.
Readers do not be fooled by the the closing momentum of the stock market today (30th June 2008). This is because there are some funds out there are artificially supporting key index stocks from falling drastically. Managers of these funds are supporting share price in order not to report bad (loss) numbers when they face their unitholders and fund contributors. This kind of artifical share price management support are commonly refer to as "WINDOW DRESSING" which are commonly found during the last day of the month, quarter, half-yearly or yearly (last trading day of the year).
YouInvest will continue to keep our ears on the ground for our readers and our unit trust clients for further updates of the Malaysian stock market and will advise accordingly. For now we are staying cautious and defensive on 2 counts [1] Political risk and [2] Inflation risk.
YouInvest - Malaysian Investing Made Easy
For private discussion email to: youinvest.malaysia@gmail.com
Send this link to a friend if you think our blog is useful. http://youinvest-malaysia.blogspot.com/
Posts
No comments:
Post a Comment